Asia-Pacific prepares for new tech regulation

Countries of the Asia-Pacific Economic Cooperation (APEC) should work on making their national digital IDs interoperable, says Daniel Castro, vice president of the Information Technology and Innovation Foundation (ITIF).

Some countries have been working on this problem, including Singapore, Brunei, Thailand, and the Philippines which are working on interoperable digital IDs throughout the ASEAN region. Many more issues, including evaluating AI models, building data-sharing initiatives and combating fake reviews and fake goods deserve the attention of the 21-country trade forum.

“APEC economies should turn their attention to building socio-technical solutions that will improve trust in the digital environment, including in emerging technologies like artificial intelligence (AI) and on existing e-commerce and social media platforms,” says Castro.

New regulation, however, may not be necessary or helpful, he adds. Instead, “voluntary socio-technical solutions” could enhance trust across borders and increase security in the digital economy.

Ant International supports digital transformation by ASEAN DEFA

Last year, ASEAN launched negotiations for its Digital Economy Framework Agreement (DEFA), a regionwide initiative to boost the digital economy and trade and secure data flows. Ant International wants to ensure the agreement creates a trustworthy and efficient digital environment.

The Singapore-headquartered fintech platform under Ant Group is an affiliate company of the Chinese conglomerate Alibaba Group. The company is currently focused on spreading its Alipay+ payment wallet across Asia.

“Varying regulations can create significant barriers to seamless business operations and digital integration. DEFA presents an opportunity to address these discrepancies, fostering a more harmonized regulatory environment,” writes Ant International’s Director of Public Policy and Government Affairs Noudhy Valdryno.

ASEAN plans to finish half of the DEFA negotiations this year, while the remainder will be left for 2025.

Hong Kong’s new internet rules could stifle digital economy

Hong Kong is currently debating a new cybersecurity bill aimed at regulating large organizations that provide critical services. The legislation, however, is causing controversy as it proposes authorities can install programs in the computer systems of private companies like Google, Amazon and other infrastructure providers in case of security incidents.

The Critical Infrastructure (Computer System) Bill has now received criticism from the Asia Internet Coalition (AIC), representing large tech companies such as Google, Meta and Amazon. The American Chamber of Commerce (AmCham) and the Hong Kong General Chamber of Commerce (HKGCC) have also joined the chorus.

The organizations say that the new rules could give the government unprecedented access to computer systems and stifle investment from technology companies. Analysts such as Counterpoint Research Neil Shah add that tech firms will need to “rethink their IT strategy on how to sandbox company and users’ private data,” CSO Online reports.

The legislation predicts fines of HK$5 million (US$ $641,800) for computer system operators behind critical infrastructure in case of lapses in cybersecurity. The consultation process for the bill closed on August 1st.

Article Topics

Ant Group  |  APAC  |  ASEAN  |  biometrics  |  digital economy  |  digital ID  |  financial inclusion  |  interoperability  |  ITIF